Re: TIPS&Treasury spreads Fido,VG,SellDirect
I just sold a multi six figure 6 mo. T-Bill using SellDirect. The process is they charge $45 for doing it, and they submit the sell to three authorized treasury brokers and take the highest offer. As such, they do their best (they state) to get you the best price. I got a call from the Treasury to confirm that I wanted to sell.
I was pretty nervous about it. This was a lot of money, and I had no way of knowing the sell price, and had no recourse if I didn't like the price. But within the week I got the money, and I'm happy with the sale. I haven't seen the detailed math (they send you a breakdown of the sale), but as far as I can tell I received the original, the earned interest for the holding period (I kept it about 47 days), minus the capital gain loss due to 6 mo rates rising, minus the $45, there about. Any spread loss appears to have been lost in the noise.